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You are evaluating a product for your price of product to be $400 per unit and sales volume to be 500 units in year 1:

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You are evaluating a product for your price of product to be $400 per unit and sales volume to be 500 units in year 1: 1,000 units in year 2; and 2,000 units in year 3. The project has a three-year life. Variable costs amount to $200 per unit and fixed costs are $100,000 per year. The project requires an initial investment of 150,000 in assets that will be depreciated straight-ine to zero over the three-year project life The actual market value of these assets at the end of year 3 is expected to be $20,000. NWC requirements at the beginning of 60,000 and recovered at end of year 3.Tax ate-a Cosf 2. company, Osmar's Dating Service. You estimate the sales ocuth D What are cash flows for each year? Show work. What are IRR and NPV for this project if cost of capital is 10 percent

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